News blog
Pennant International
- BY: Andrew Hore |
- POSTED: 04/04/2008 |
Training systems and software provider Pennant International increased its 2007 underlying trading profit by 16%.
Turnover rose 9% to £12.4m, while the reported profit increased from £606,000 to £1.12m. That includes a £376,000 gain on the sale of surplus premises in Southampton.
The sale of its surplus premises has boosted net cash to £800,000.
Pennant is still dependent on capital programmes in the defence, aerospace and rail sectors and it is trying to increase its recurring revenues. All of the core businesses are winning contracts but the data services division, which provides electronic documentation and e-learning, was hit by delays caused by government reorganisation.
The software and data services divisions have good order visibility. Although the training side has long-term contracts there is a danger that there could be budget cuts and delays to contracts.
The shares rose 1.5p to 15p, valuing the company at £4.63m. The historical rating based on underlying profits is little more than seven times earnings. That seems to more than take account of any worries about contract delays.
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